Yep, M-Audio O2. I do both. live playing & punch in notes then fill them in by "draw" them in the notes panel.
I have the M-Audio Axiom 61 controller and do the same with VSTs, I use Renoise which lets you map just about any keyboard feature to any plugin parameter.
I can then record wahtever I'm playing in the sequencer, it records whatever I'm playing, including slider positions and other things, I then go back and clean up and fix mistakes.